Intel Initiates Preliminary Partnership with Apple for Chip Production
May 8 (Reuters) – Intel has reportedly established a preliminary accord to produce select chips for Apple’s ecosystem, as disclosed by the Wall Street Journal on Friday.
This development is poised to invigorate Intel’s contract manufacturing division and aligns with governmental initiatives aimed at bolstering U.S. semiconductor production.
According to sources familiar with the negotiations, the entities have been embroiled in intensive discussions for over a year, culminating in a formal agreement in recent months.
In response to the announcement, Intel’s stock surged by 15%, while Apple shares experienced a modest increase of approximately 1.7% during afternoon trading.
Securing a contract with Apple would afford Intel a consistent influx of demand from one of the globe’s preeminent consumer electronics manufacturers, thereby enhancing its standing and rejuvenating its manufacturing sector, which has lagged behind TSMC in recent years.
The Journal’s report indicated that the U.S. government, which emerged as Intel’s largest shareholder last year following a deal brokered by CEO Lip-Bu Tan, played a pivotal role in facilitating Apple’s negotiations.
An administration official refrained from commenting specifically on the rumored Apple-Intel agreement but acknowledged the administration’s broader efforts to bolster Intel’s position.
“In general, we want to and have been assisting Intel,” the official stated, emphasizing that the support is not solely due to the equity stake but stems from the company’s prominence as a U.S. semiconductor producer.
“We have been striving to generate business for Intel,” the representative added.
This partnership would further the Trump administration’s objective of enhancing domestic chip production and strengthening local manufacturing capabilities.
The report does not clarify which specific Apple products will feature Intel-manufactured chips. Both Intel and Apple have opted not to comment on the matter.
For Apple, collaborating with Intel could facilitate diversification within its manufacturing framework as it seeks to expand its chip capacity.
The tech giant currently relies heavily on TSMC, whose advanced production capabilities are in high demand among AI chip producers like Nvidia and AMD.
During Apple’s latest earnings call, CEO Tim Cook indicated that supply constraints at its contract manufacturer had impeded iPhone sales.
This collaboration would rekindle the relationship between the two companies, years after Apple transitioned away from Intel’s processors for its Mac computers in favor of its proprietary silicon.
In the past year, Intel has been actively securing pacts with the U.S. government while attracting investments from entities such as Nvidia and SoftBank, as Tan endeavors to revitalize the company.
According to the WSJ, Commerce Secretary Howard Lutnick has engaged in multiple discussions over the past year with senior Apple executives, including Cook, alongside SpaceX founder Elon Musk and Nvidia CEO Jensen Huang, to motivate their cooperation with Intel.
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